{"id":74719,"date":"2022-11-09T02:12:23","date_gmt":"2022-11-09T02:12:23","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2022\/11\/09\/loss-and-damage-financing-gets-another-boost-but-adaptation-focused-financing-is-key-policymakers-say\/"},"modified":"2022-11-09T02:12:23","modified_gmt":"2022-11-09T02:12:23","slug":"loss-and-damage-financing-gets-another-boost-but-adaptation-focused-financing-is-key-policymakers-say","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2022\/11\/09\/loss-and-damage-financing-gets-another-boost-but-adaptation-focused-financing-is-key-policymakers-say\/","title":{"rendered":"Loss and damage financing gets another boost \u2014 but adaptation-focused financing is key, policymakers say"},"content":{"rendered":"

<\/a> On the financing front, we saw yesterday a handful of fresh funding<\/strong> commitments<\/strong>, including more countries committing to loss and damage financing and a new \u201ctrust fund\u201d to pool together resources to finance the green transition. Heads of state and other big names in the climate scene continued to stress on the importance of equitable adaptation-focused financing for developing nations.<\/p>\n

Germany joins a World Bank-hosted fund for loss and damage financing, committing<\/strong> EUR 170 mn: <\/strong>Germany is providing EUR 170 mn for a G7-funded \u201cGlobal Shield Financing Facility\u201d aimed at increasing \u201ctargeted\u201d finance for disaster protection and ins. for the V20 group<\/a> of 58 nations most vulnerable to climate change, according to Chancellor Olaf Scholz, who spoke<\/a> on Monday, Reuters<\/a>reports. Lebanon, Morocco, Palestine, Tunisia, and Yemen are <\/strong>all members<\/a><\/strong> of the V20<\/strong>. The World Bank will host the facility, which the G7 countries will pay into, President David Malpass announced at a meeting with Scholz, Reuters reported<\/a>.<\/p>\n

And Austria makes five (countries committing to loss and damage financing, that is):<\/strong> Austria is committing \u201cat least\u201d EUR 50 mn to help developing countries tackle loss and damage over the next four years, the country\u2019s climate ministry told Reuters<\/a> yesterday. Funds could go towards the UN\u2019s \u201cSantiago Network\u201d \u2014 which provides technical support to countries that sustain damage from climate change-induced natural disasters \u2014 and an early warning system program, the news outlet reports. Austria will also add another EUR 10 mn to this year\u2019s budget for climate finance, Climate Minister Leonore Gewessler is reported to have said. Austria joins Belgium \u2014 which pledged EUR 2.5 mn for loss and damage in Mozambique from 2023-2028, we noted yesterday<\/a> \u2014 as well as Scotland and Denmark, the only other two countries to have ever pledged<\/a> loss and damage funding \u2014 a major theme of this year\u2019s summit.<\/p>\n

Separately, the World Bank launched Scale yesterday, the \u201cbig trust fund\u201d<\/strong> to \u201cpool funding from the global community \u2014 including donor countries, the private sector and foundations \u2014 for scalable pathways to greenhouse gas emission reduction,\u201d according to a statement<\/a>. Malpass had announced the fund in mid-October, we reported<\/a>. \u201cI think of it as a giant resource need that can be filled by grants from the advanced economies,\u201d Malpass told Bloomberg<\/a>.<\/p>\n

A thumbs up to South Africa\u2019s decarbonization plan could open the door for promised<\/strong> funding:<\/strong> The EU and a handful of wealthy countries that last year committed<\/a> to provide USD 8.5 bn in the form of grants, loans, investments, and \u201crisk-sharing instruments\u201d to help South Africa decarbonize its economy have endorsed the country\u2019s plan to wean itself off coal \u2014 paving the way for the funding to be issued, they said in a joint statement<\/a> on Monday. The funding will support \u201ccoal plant decommissioning; funding alternative employment in coal mining areas; investments which will facilitate accelerated deployment of renewable energy and investments in new sectors of the green economy.\u201d<\/p>\n

But South Africa\u2019s President is pushing for a revamp of how climate finance is delivered:<\/strong> South Africa\u2019s President Cyril Ramaphosa wants multilateral development banks to be less \u201crisk averse\u201d in their lending approach, he said during his speech yesterday, saying multilateral support was unobtainable for most of the world (watch, runtime: 16:45<\/a>). He pushed for more funding in the form of grants and concessional loans, Bloomberg<\/a> noted. The pledge from the International Partners Group \u2014 the US, EU, Britain, France and Germany \u2014 to fund South Africa\u2019s decarbonization plan has drawn criticism<\/a> for reportedly planning to provide some 80% of the USD 8.5 bn pledged as loans rather than grants.<\/p>\n

A CHORUS OF CALLS FOR ADAPTATION-FOCUSED FINANCE-<\/strong><\/p>\n

Kerry appeals for \u201ccommon sense\u201d in climate finance delivery: <\/strong>US climate envoy John Kerry called out the failure of wealthy countries to deliver a promised USD 100 bn in climate finance, while some countries are still investing in fossil fuels, at a panel discussion on climate adaptation yesterday, Bloomberg<\/a> reported. He warned that USD 11.4 bn in international climate finance promised by US President Joe Biden by 2024 might never materialize if Democrats lose control of Congress in Tuesday\u2019s midterms. \u201cIf what I think will happen in today\u2019s elections happens and the House is gone, you\u2019re not going to see that money,\u201d he said.<\/p>\n

Adaptation needs to be a climate finance priority \u2014 and wealthy countries need to step<\/strong> up<\/strong>, Pakistan\u2019s Prime Minister Shehbaz Sharif said yesterday, calling for \u201cadditional and sustained resources\u201d to meet developing countries\u2019 needs \u201cwith the speed and scale that\u2019s required\u201d (watch, runtime: 13:02<\/a>). \u201cA goal on adaptation needs to be prioritized\u201d to help Pakistan \u2014 which saw devastating floods earlier this year \u2014 rebuild, without falling into a \u201cfinancial debt trap,\u201d Sharif said.<\/p>\n

Big Oil, Western gov\u2019ts came under fire from nations buffeted by extreme weather:<\/strong> Leaders of small island states called yesterday for a global carbon tax to be levied on oil and gas companies as a source of loss and damage funding, Reuters<\/a>reported. Collectively, these companies see daily net income of some USD 3 bn, while \u201cthe planet is burning,\u201d said Antigua\u2019s Prime Minister Gaston Browne, speaking on behalf of the Alliance of Small Island States<\/a>. Sri Lanka\u2019s President Ranil Wickremesinghe meanwhile slammed the \u201cdouble standards\u201d of Western governments that have financed the Russia-Ukraine war, while missing climate financing targets (watch, runtime: 8:45<\/a>). Many developed nations \u201cdeem it fit to wait on their climate financing contributions, but seem \u201cto have no qualms spending for a war,\u201d he said.<\/p>\n

Gates Foundation CEO Mark Suzman also joined calls for more adaptation-focused<\/strong> investment<\/strong>, telling Reuters<\/a> that despite increases, funding was still \u201cfar short of what is needed.\u201d Multilateral development banks like the World Bank need to do more, Suzman said. The foundation pledged USD 1.4 bn to support smallholder farmers on Monday, we noted<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

On the financing front, we saw yesterday a handful of fresh funding commitments, including more countries committing to loss and damage financing and a new \u201ctrust fund\u201d to pool together resources to finance the green transition. Heads of state and other big names in the climate scene continued to stress on the importance of equitable […]<\/p>\n","protected":false},"author":1,"featured_media":74720,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1232],"tags":[1231,659,11],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-74719","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cop-watch-climate-finance","tag-cop-watch-climate-finance","tag-cop27","tag-enterpriseclimate","wpautop","entry"],"acf":{"mongo_id":"a322d261-64f2-42ae-80fa-7178f25417ab","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/12\/771.jpg","photo_position":"above","related_issue":[74713],"teaser":"","voice_url":""},"yoast_head":"\nLoss and damage financing gets another boost \u2014 but adaptation-focused financing is key, policymakers say - Climate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/climate\/2022\/11\/09\/loss-and-damage-financing-gets-another-boost-but-adaptation-focused-financing-is-key-policymakers-say\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Loss and damage financing gets another boost \u2014 but adaptation-focused financing is key, policymakers say\" \/>\n<meta property=\"og:description\" content=\"On the financing front, we saw yesterday a handful of fresh funding commitments, including more countries committing to loss and damage financing and a new \u201ctrust fund\u201d to pool together resources to finance the green transition. 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